Man Shing Agricultural Holdings, Inc. (OTCBB: MSAH) (OTCQB: MSAH)
(" Man Shing" the "Company," "we," "us," or "our"), located in the
Shandong Province and one of the largest Chinese exporters of high
quality, fresh ginger to Japan, the United Kingdom, and the
Netherlands, today announced the financial results for the fiscal
year ending June 30, 2011. Net income for the 2011 fiscal year
totaled $9 million, or basic earnings per share of $0.21, exceeding
guidance of $8.8 million.
Financial Highlights for the Fiscal Year Ended
June 30, 2011
- Revenue increased 43.8% year-over-year to $32.3 million;
- Gross profit increased 61.8% to $13.6 million; gross margin
improved to 42.2%;
- Net income increased 72.1% to $9 million;
- Basic earnings per share of $0.21 based on 42.3 million
weighted average shares outstanding;
- Cash and cash equivalents totaled $7.1 million;
- Working capital increased year-over-year by $13.3 million to
$23.6 million.
Operational Highlights for the Fiscal Year
Ended June 30, 2011
- Successfully leased an additional 2.4 million square meters of
farmland in March 2011, increasing total farmland by approximately
45% to 7.7 million square meters.
- Focused on producing high quality ginger which provides several
important advantages including a higher price point and increased
customer confidence.
- Appointed Mr. Xuguang Qiao and Mr. Kun Xu to the Board of
Directors, each of whom have extensive experience in the
agricultural industry.
- Approximately 3.4 million preferred shares outstanding were
canceled.
Mr. Shili Liu, Chairman and Chief Executive Officer of Man
Shing, stated, "We are pleased that we generated $9 million in net
income and exceed our guidance. Additionally, we successfully
increased our land capacity by 45%, from 5.3 million to 7.7 million
square meters, allowing us to significantly increase our production
capacity for the current fiscal year. We completed planting on all
7.7 million square meters in April and will begin to harvest the
ginger by October 2011. The uniqueness of our business model is
apparent as we increase our land capacity and are able to
continually implement our quality standards without incurring
additional expenses. This enabled us to increase our gross margins
year over year from 37.5% in fiscal 2010 to 42.2% in fiscal 2011.
Our company is well capitalized and as of June 30, 2011, we had
approximately $7.1 million in cash which will provide us with
sufficient capital to fuel the future growth of the Company."
Financial results for the twelve months ended
June 30, 2011
----------------------------------------------------------------------------
Year to Date Financials (USD) (unaudited)
----------------------------------------------------------------------------
Twelve months ended June 30, 2011 2010 CHANGE
----------------------------------------------------------------------------
Revenue $32.3 million $22.4 million +43.8%
----------------------------------------------------------------------------
Gross Profit $13.6 million $8.4 million +61.8%
----------------------------------------------------------------------------
Gross Profit Margin 42.2% 37.5% +12.5%
----------------------------------------------------------------------------
Net Income $9 million $5.2 million +72.1%
----------------------------------------------------------------------------
Basic EPS* $0.21 $0.18 +16.7%
----------------------------------------------------------------------------
Diluted EPS ** $0.15 $0.07 +114.3%
----------------------------------------------------------------------------
* Based on 42.3 million and 28.8 million shares outstanding for fiscal 2011
and 2010, respectively.
** Based on 59.6 million and 72.3 million fully diluted shares outstanding
for fiscal 2011 and 2010, respectively.
----------------------------------------------------------------------------
Financial Results for the Fiscal Year Ended
June 30, 2011 Revenue for the fiscal year ended June 30, 2011
totaled $32.3 million, an increase of 43.8% as compared to $22.4
million for the same period in 2010. The revenue increase was due
primarily to the increase in sales of frozen and fresh ginger and
other agricultural products and the leasing of more farmland, our
marketing strategy and customer loyalty. The average market price
of ginger reached $1,366 per ton during fiscal 2011, compared to
the average market price of $1,046 per ton for the same period in
fiscal 2010.
Cost of sales for the fiscal year ended June 30, 2011 totaled
$18.7 million, or 57.8% of revenue, an increase of 33.1% compared
to $14 million, or 62.5% of revenue, for the fiscal year ended June
30, 2010. Cost of sales includes the costs associated with the
planting, harvesting and maintaining of ginger and other
agricultural products. Cost of sales as a percentage of revenues
decreased mainly due to cost controls associated with planting and
production and the market price appreciation of ginger. The Company
minimizes waste by storing the ginger in a thermostatic
warehouse.
Gross profit for the fiscal year ended June 30, 2011 totaled
$13.6 million, an increase of 61.8% compared to $8.4 million for
the fiscal year ended June 30, 2010. Gross profit margin improved
to 42.2% for the 2011 fiscal year as compared to 37.5% for the 2010
fiscal year. The increase in gross profit margin was primarily
attributable to the increase in selling prices and control of
material costs and overhead resulting from better utilization of
facilities due to economies of scale from larger output volume.
Operating expenses for the fiscal year ended June 30, 2011
totaled $4.5 million as compared to $3.1 for the fiscal year ended
June 30, 2010. The increase in operating expenses for fiscal 2011
consisted of an increase in selling and marketing expenses due
primarily to the increase in distribution costs and an increase in
sales and marketing activities to both existing and new
customers.
Net income for the 2011 fiscal year ended June 30, 2011 totaled
$9 million, an increase of 72.1% compared to $5.2 million for the
2010 fiscal year ended June 30, 2010. Basic earnings per share for
fiscal 2011 were $0.21, based on 42.3 million basic shares
outstanding versus earnings per share of $0.18 for fiscal 2010,
based on 28.8 million basic shares outstanding. Diluted earnings
per share for fiscal 2011 totaled $0.15 based on 59.6 million
shares outstanding, as compared to $0.07 based on 72.3 million
shares outstanding for fiscal 2010.
Liquidity and Capital Resources As of June
30, 2011, Man Shing had approximately $7.1 million in cash and cash
equivalents. As of June 30, 2011, total current assets and total
assets were approximately $28.3 million and $29.9 million,
respectively. During the same period, total current liabilities and
total liabilities were approximately $4.7 million and $6.2 million,
respectively. Working capital increased year-over-year by $13.3
million to $23.6 million as of June 30, 2011, as compared to $10.3
million as of June 30, 2010. Shareholder's equity increased 146% to
$23.7 million as of June 30, 2011, compared to $9.6 million as of
June 30, 2010.
Mr. Shili Liu concluded, "As a public company, it will always be
our intention to provide shareholders and prospective investors
with business transparency and open communication as it relates to
capital markets. We will continue to work diligently to continue
building the trust of the PRC government, our loyal customer base
and our shareholders. Strong relationships with the local
government and customers and our focus on quality products are at
the heart of our success. We are looking forward to the upcoming
harvest season."
About Man Shing Agricultural Holdings,
Inc. Man Shing Agricultural Holdings, Inc., through its
operating subsidiary in Shandong China, is focused on the
production and processing of fresh ginger and other select
vegetables such as onion and garlic. The Company produces high
quality ginger which meets the requirements of the British Retail
Consortium Global Food Standard. The Company focuses on customers
located in countries such as Japan and the European Union which are
food safety oriented. For further information about Man Shing
Agricultural Holdings, Inc., please visit the Company's website at
http://www.msaginger.com/
Forward-Looking Statement: This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, and Section 21E of the
Securities Exchange Act of 1934. These statements relate to future
events or our future financial performance. We have attempted to
identify forward-looking statements by terminology including
"anticipates," "believes," "expects," "can," "continue," "could,"
"estimates," "expects," "intends," "may," "plans," "potential,"
"predict," "should" or "will" or the negative of these terms or
other comparable terminology. These statements are only
predictions. Uncertainties and other factors may cause our actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels or activity,
performance or achievements expressed or implied by these
forward-looking statements.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
Our expectations are as of the date hereof, and we do not intend to
update any of the forward-looking statements after the filing date
to conform these statements to actual results, unless required by
law.
We file annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and proxy and information
statements and amendments to reports filed or furnished pursuant to
Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as
amended. You may read and copy these materials at the SEC's Public
Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You
may obtain information on the operation of the public reference
room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a
website (http://www.sec.gov) that contains reports, proxy and
information statements and other information regarding us and other
companies that file materials with the SEC electronically.
Man Shing Agricultural Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2011 and 2010
ASSETS 2011 2010
------------ ------------
CURRENT ASSETS
Cash and cash equivalents $ 7,081,297 $ 378,929
Accounts receivable, trade 6,330,625 2,249,998
Inventories 5,443,117 4,938,043
Deferred inventory costs 9,064,571 5,118,558
Prepayments 371,881 350,668
Other receivables 787 747
Tax recoverable 15,144 -
------------ ------------
TOTAL CURRENT ASSETS 28,307,422 13,036,943
------------ ------------
FIXED ASSETS
Property, plant, and equipment 1,619,838 908,105
Accumulated depreciation (257,250) (182,665)
Construction in progress 211,752 124,697
------------ ------------
NET FIXED ASSETS 1,574,340 850,137
------------ ------------
TOTAL ASSETS $ 29,881,762 $ 13,887,080
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $ 1,916,064 $ 352,087
Note payable - 318,375
Accounts payable 691,628 597,791
Other payables and accrued liabilities 1,685,016 1,047,529
Receipts in advance 402,557 314,916
Tax payable - 128,338
------------ ------------
TOTAL CURRENT LIABILITIES 4,695,265 2,759,036
------------ ------------
LONG-TERM LIABILITIES
Convertible notes (convertible up to 750,000
common stock with $2 conversion price) 1,500,000 1,500,000
------------ ------------
TOTAL LIABILITIES 6,195,265 4,259,036
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par, 25,000,000 shares
authorized, 176,750 and 3,535,000 shares
issued and outstanding at June 30, 2011 and
June 30, 2010, respectively 177 3,535
Common stock, $.001 par, 175,000,000 shares
authorized, 48,026,958 and 38,026,958 shares
issued and outstanding at June 30, 2011 and
June 30, 2010, respectively 48,027 38,027
Additional paid-in capital 4,210,545 177,187
Accumulated other comprehensive income 1,180,599 189,187
Statutory reserves 5,823,139 2,134,501
Retained earnings 12,424,010 7,085,607
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 23,686,497 9,628,044
------------ ------------
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 29,881,762 $ 13,887,080
============ ============
The accompanying notes are an integral part of these consolidated financial
statements.
Man Shing Agricultural Holdings, Inc. and Subsidiaries
Consolidated Statements of Operation and Comprehensive Income
For the Years Ended June 30, 2011 and 2010
2011 2010
------------ ------------
Revenues
Sales $ 32,253,922 $ 22,425,534
Cost of sales 18,652,553 14,018,540
------------ ------------
Gross profit 13,601,369 8,406,994
Operating expenses
Selling and marketing expenses 2,974,674 1,487,801
General and administrative expenses 1,505,852 1,605,348
------------ ------------
Total operating expenses 4,480,526 3,093,149
------------ ------------
Operating income 9,120,843 5,313,845
Other income (expenses)
Financial income (expenses) (169,791) (13,590)
Interest on convertible notes (120,000) (60,000)
Non-operating income (expenses) 195,989 4,238
------------ ------------
Total other income (expenses) (93,802) (69,352)
------------ ------------
Income from before income taxes 9,027,041 5,244,493
Income taxes - -
------------ ------------
Net income $ 9,027,041 $ 5,244,493
Other comprehensive income
Foreign currency translation gain 991,412 55,753
------------ ------------
Comprehensive income $ 10,018,453 $ 5,300,246
============ ============
Weighted average number of shares outstanding
Basic 42,273,533 28,833,604
============ ============
Diluted 59,590,191 72,298,661
============ ============
Earnings per share
Basic $ 0.21 $ 0.18
============ ============
Diluted $ 0.15 $ 0.07
============ ============
The accompanying notes are an integral part of these consolidated financial
statements.
Company Contact: Man Shing Agricultural Holdings, Inc.
Mr. Shili Liu CEO, Chairman and president Email Contact Mr. Kenny
Chow CFO Email Contact +86-536-464-4888 +852-2530-3122
www.msaginger.com Investor Contact: Alliance Advisors, LLC
Alan Sheinwald President & Founder (914) 669-0222 Email Contact
www.AllianceAdvisors.net
Man Shing Agricultural (CE) (USOTC:MSAH)
Historical Stock Chart
From Oct 2024 to Nov 2024
Man Shing Agricultural (CE) (USOTC:MSAH)
Historical Stock Chart
From Nov 2023 to Nov 2024
